Oil jumps to highest since 2014 after USA quits Iran deal

Key buyers of Iranian oil

Trump said on 8 May that the US will withdraw from the Joint Comprehensive Plan of Action (JCPOA), better known as the Iran nuclear agreement, reached in 2015 between the six world powers - the US, UK, France, Germany, Russia, China - and Iran.

For Iran's clients, what happens this time will likely echo the last episode earlier this decade, when Iran was also sanctioned by the U.S. Back then countries were given exemptions by the U.S. - reviewed every 180 days - if they "significantly" reduced imports from the Islamic Republic.

Iranian oil accounted for 13 percent of the country's total crude imports past year, coming in third place after Saudi Arabia and Kuwait.

Analysts now expect Iran's supplies to fall by 300,000 bpd to 1 million bpd, depending on how many other countries fall in line with Washington.

Trump's decision came as no surprise as he has always been against the Iran deal.

Wall Street cut losses to end little changed on Tuesday while energy stocks rallied after U.S. President Donald Trump said the United States would quit the Iran nuclear deal, confirming what many investors had expected.

China's response to the US sanctions is unclear.

Japan's Foreign Minister Taro Kono said on Wednesday that his country supported the agreement, which "helps to strengthen global non-proliferation and the stability in the Middle East".

The Treasury Department issued guidance on how the sanctions will be reimposed.

Speaking earlier to CNN, he said that any factor that prevented the smooth running of the oil industry "will not be in the interest of the global economy" in reference to a USA exit from the Iranian nuclear deal.

Still, early indications show importers of Iranian crude now waiting for more clarity on the U.S. sanctions are not inclined to react immediately.

The biggest single buyer of Iran's crude is China, whose imports peaked at about 900,000 bpd in mid-2016 but have dropped to around 600,000 bpd in 2018, according to Thomson Reuters ship-tracking data. "The President's hawkish language has the potential to aggravate tensions in the Middle East further, potentially putting additional upward pressure on crude oil prices", the Japanese firm said.

When Tiger and Phil go head-to-head: A tale of the tape
That time, in the third round, Woods hit a 60-foot putt on the 17th green, finishing with a 66 and a victory the next day. Woods, meanwhile, had spent a year overhauling his swing with Hank Haney and hadn't won a major since the 2002 U.S.

Johnny Manziel hospitalized over prescription meds reaction
If he does, it's a two-year deal and he's still waiting to see if an National Football League comes calling for him. Johnny Manziel was hospitalized Monday night in Texas, TMZ Sports has learned.

Comcast planning all-cash Fox bid?
After months of negotiation, they settled on a $ 52 billion acquisition , where Disney would acquire most of Fox's assets. On Monday, Reuters reported that Comcast (cmcsa) is getting its ducks in a row to scupper the deal, one way or another.

USA light crude was up $1.90 a barrel, or nearly 2.8 percent, at $70.96, near highs also last seen in late 2014.

And Chinese refiners say there are alternative suppliers, including Russia, Saudi Arabia and exporters in West Africa.

"The oil supply/demand balance is roughly in balance now, but it could turn to a complete supply shortage (in case of new supply curbs)".

In India, another major buyer of Iranian oil, refiners hope they can continue importing Iranian oil.

Trump also reinstated U.S. sanctions which could curtail Iran's ability to export oil, its mainstay for public revenues.

Political news kept stocks from trading higher on Tuesday.

When sanctions were loosened against Tehran in 2016, India ramped up imports from Iran to nearly 900,000 bpd in late 2016, but intake has fallen back to around 500,000 bpd since the start of the year.

Kloza says the biggest reason prices are up now is that supply and demand are tightening.

As a result, crude oil inventories in major developed nations have fallen sharply in the last year and a half to 2.85 billion barrels, only slightly above their five-year average.

"I think we're going to $80", said Eric Nuttall, senior portfolio manager at Ninepoint Partners in Toronto, referring to the benchmark crude oil price.

Saudi Arabia said it would work with other producers to lessen the impact of any shortage in oil supplies.

Related news:

Hot News

isis-killer-beheading-video-story-top China Trade Surplus with US Grew Sharply in April
May 09, 2018 - 06:52
Last week, a seven-member USA delegation returned to Washington and briefed Trump on their meeting with Chinese counterparts. The growing trade surplus comes at a time of escalating friction between Beijing and Washington over the imbalance.

isis-killer-beheading-video-story-top Saints' Mark Ingram suspended first 4 games of 2018 season
May 09, 2018 - 06:47
However, it was expected to remain a 1A/1B situation after that worked out so well previous year for the NFC South champions. The New Orleans Saints will be down an offensive weapon for the first four weeks of the 2018 season.

isis-killer-beheading-video-story-top Post Malone Breaks Beatles Record for Most Top 20 Hits at Once
May 09, 2018 - 06:46
Syracuse-born rapper Post Malone has broken a record held by The Beatles for more than half a century. Malone also has the biggest debut since Taylor Swift's Reputation was released in December 2017.

isis-killer-beheading-video-story-top China: Former political star Sun Zhengcai sentenced to life
May 09, 2018 - 06:45
One of the most powerful men in all of China presently, Jinping rose to fame due to his anti-corruption stance. Sun was replaced in Chongqing by Chen Miner, a protégé of President Xi Jinping and a rising political star.

isis-killer-beheading-video-story-top Joe Burrow To Transfer From Ohio State
May 09, 2018 - 06:38
Florida now drops down to three scholarship quarterbacks after Jake Allen made a decision to transfer away from the program. LSU and Cincinnati have been granted permission to contact Ohio State quarterback Joe Burrow, SI.com has learned.

isis-killer-beheading-video-story-top Disney shares rise on earnings, revenue beat
May 09, 2018 - 06:31
If we look at the Volatility of The Walt Disney Company (DIS ), Week Volatility is 1.73%, whereas Month Volatility is at 1.58%. Disney stock closed Monday at $102.48, down 4.7% year to date and down 9.5% from its 2018 high of $113.19 set on January 3.

isis-killer-beheading-video-story-top Elon Musk appeared at the Met Gala with a new girl
May 09, 2018 - 06:20
Musk is well-known for warning of an impending A.I. apocalypse, which he believes is more unsafe than nuclear war. There are few places higher than the Met Gala for a new couple to become official.

isis-killer-beheading-video-story-top Arsenal Managerial Transfer Target Massimiliano Allegri Set For Talks Over Juventus Future
May 09, 2018 - 06:19
In that famous season, Arsenal won 26 and drew 12 games in the top-flight as they sealed their place in history. Before the encounter, the iconic manager was given a guard of honour and serenaded throughout the tie.

isis-killer-beheading-video-story-top Eric Schneiderman, Accused by 4 Women, Quits as New York Attorney General
May 09, 2018 - 06:17
The statute of limitations in NY for prosecuting someone is five years for a serious assault, two years for a lower-level one. Hyde" figure, and Manning Barish said he was "absolutely plastered five nights out of seven". "A tremendous betrayal.

isis-killer-beheading-video-story-top #N12BX: McCain says Trump not invited to funeral
May 09, 2018 - 06:06
The New York Times cited McCain as saying that he wished he had instead chosen former Republican Senator Joseph Lieberman. During the 2016 presidential campaign, candidate Trump said that McCain was not the type of hero he admired.

isis-killer-beheading-video-story-top Russia's Medvedev says no plans to change personal income tax for now
May 09, 2018 - 06:01
Medvedev noted that he is only proposing candidates for key posts in the government now and will nominate others later. According to the Russian legislation, Medvedev has to present a Cabinet lineup within a week.

isis-killer-beheading-video-story-top Uber Flying Taxi Launch Only 2 Years Away, Company Says
May 09, 2018 - 05:54
Putting a date on the plans, Uber said Dallas, Dubai, and Los Angeles would all have uberAIR flying vehicles overhead by 2020. Khosrowshahi became the CEO of Uber in August after his predecessor, Travis Kalanick, resigned.

isis-killer-beheading-video-story-top Israel strikes Syria after Trump's Iran move
May 09, 2018 - 05:44
On Sunday, military officials said Iran may be planning to launch missiles at a military target. An Iranian navy base in Syria was attacked on Tuesday, sources confirmed to Fox Information.

isis-killer-beheading-video-story-top Washington without injured C Nicklas Backstrom for Game 6
May 09, 2018 - 05:31
NOTES: Crosby's assist pushed his career playoff total to 185, tied with Hall of Famer Steve Yzerman for 10th most all-time. Washington went 1-1-1 against the Lightning in three regular season meetings, the last a 4-2 loss at home on February 20.

isis-killer-beheading-video-story-top Sri Lanka says in touch with Malaysia over detained boat people
May 09, 2018 - 05:30
The Ministry of Foreign Affairs said people smuggling and human trafficking was an "increasing concern" regionally and at home. Another five Malaysians were nabbed for suspected involvement in the smuggling syndicate.